US Exim Bank Files Bankruptcy Case Against Reliance Power Over $165 Million Debt

The Export Import Bank of the United States (US Exim) has filed a bankruptcy case against Reliance Power Ltd., a company under the Anil Ambani Group, for a debt default amounting to $165.41 million.  

The default pertains to its subsidiary, Samalkot Power Ltd., with the debt guaranteed by the parent company. 

Details of the Bankruptcy Filing 

US Exim has lodged an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, against Reliance Power.  

This section allows financial creditors to initiate the Corporate Insolvency Resolution Process (CIRP) when a default of at least ₹1 crore occurs.  

The application was filed before the National Company Law Tribunal (NCLT) after establishing the debt and default. 

Legal Proceedings and Disputes 

Reliance Power has stated that Samalkot Power Ltd. (SPL) filed an application on June 29, 2025, with the London Court of International Arbitration against US Exim and Citibank N.A. (Facility Agent), contesting the debt's validity. This matter is currently pending adjudication. 

Company's Response and Market Impact 

Reliance Power has expressed its intent to contest the application, asserting that it is not legally tenable.  

The company plans to take all necessary legal steps to safeguard its interests.  

Meanwhile, shares of Reliance Power have seen a decline, dropping 27% over the past 12 months and 16% year-to-date.  

The stock experienced a 1.9% decrease on the NSE on the day before the announcement. 

Read More: ED Attaches ₹3,034 Crore Worth Assets in Anil Ambani’s Reliance Group Investigation! 

Enforcement Directorate Investigation 

In addition to the bankruptcy proceedings, Anil Ambani Group companies, including Reliance Power, are under investigation by the Enforcement Directorate for alleged bank fraud and fund diversion. This adds another layer of complexity to the financial challenges faced by the group. 

Conclusion 

The bankruptcy filing by US Exim Bank against Reliance Power highlights significant financial and legal challenges for the company. With ongoing disputes and investigations, the situation remains complex and uncertain. 

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